Ozayi Ltd is a new manufacturing company producing consumer goods. The company intends to gain market shares by using sales promotion a). Outline four impor...

(a) Four importance of sales promotion to Ozayi Ltd

1. Increases sales quickly: Sales promotion offers short-term incentives that encourage customers to buy immediately, boosting sales volume.
2. Attracts new customers and market share: Free samples, gifts and discounts draw first-time buyers away from competitors, helping the new company gain market share.
3. Introduces new products: It creates awareness and encourages trial of the company's new consumer goods.
4. Clears stock and reduces competition pressure: It helps move goods faster and counter the promotional efforts of rival firms.

Other acceptable point: it builds customer loyalty and encourages repeat purchase.

(b) Four sales promotional tools that can be used by the company (explained)

1. Free samples: Giving customers small free quantities of the product to try, so they experience its quality and are encouraged to buy the full size.
2. Price discounts (price-off): Reducing the normal price for a short period to attract buyers and increase immediate sales.
3. Coupons: Issuing vouchers that entitle the holder to a stated reduction in price on the next purchase, encouraging patronage.
4. Free gifts / premium offers: Giving an extra item free or at low cost with the purchase of the product to make it more attractive to buy.

Other acceptable tools: buy-one-get-one-free offers, trade fairs and exhibitions, and loyalty/reward schemes.